Council Tax Arrears
Council tax is a priority debt. Councils have strong recovery powers and can move from a missed instalment to a liability order and enforcement agent referral within weeks. Acting early makes a significant difference.
How council tax arrears escalate
- Reminder notice – issued after a missed instalment; you have seven days to pay
- Final notice – after a second missed payment you lose the right to pay by instalments and the full year's balance becomes due
- Summons and liability order – the council applies to the magistrates' court, adding costs
- Enforcement – the council can instruct enforcement agents (bailiffs), apply for an attachment of earnings or benefits, or in rare cases petition for bankruptcy or a charging order
What to do right now
- Contact the council before the account is passed to enforcement agents – many will agree an affordable repayment arrangement
- Check whether you are entitled to Council Tax Reduction, a single-person discount or an exemption
- Ask whether a Section 13A hardship write-off applies in exceptional circumstances
- If enforcement agents are already involved, you do not have to let them in; agree a controlled goods agreement only if you can keep to it
Which debt solutions can include council tax?
Arrears for previous years can be included in an IVA, DRO or bankruptcy, and can be part of a DMP budget. In Scotland, arrears can be included in the Debt Arrangement Scheme or a Trust Deed. The current year's liability normally has to be kept up to date alongside any plan.
Frequently asked questions
Can bailiffs force entry for council tax?
No. Enforcement agents collecting council tax cannot force entry to your home. They can only enter peacefully through a door you open. They can remove goods that are outside, such as a vehicle, if a controlled goods agreement has been breached or they have taken control of goods.
Can I go to prison for council tax debt?
Committal to prison is possible in England as a last resort where the court finds wilful refusal or culpable neglect, but it is rare and only after all other enforcement has been tried. In Wales and Scotland it is no longer available.
How far back can a council chase council tax?
A council must apply for a liability order within six years of the debt becoming due. Once a liability order exists there is no time limit on enforcement.
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